Amendment on enforcement of Wealth Statement Section 116
Amendment on enforcement of Wealth Statement Section 116: Finance Act, 2024 — Explanation regarding Important Amendments made in the Income Tax Ordinance, 2001
Important amendments made in Income Tax Ordinance, 2001 (“the Ordinance”) through Finance Act, 2024 are explained in the subsequent paragraphs.
Amendment on enforcement of Wealth Statement Section 116
As per sub-section (2) of section 116, every resident person, being an individual, filing a return of income for any tax year shall furnish a wealth statement and wealth reconciliation statement for that year along with such return.
As per clauses (a) and (b) of sub-section (1) of section 116, the Commissioner may, by a notice in writing, require any person being an individual to furnish a wealth statement in the prescribed form and verified in the prescribed manner giving particulars of the person’s total assets and liabilities and the total assets and liabilities of the person’s spouse, minor children and other dependents.
Through the Finance Act, 2024, a person shall be required to furnish particulars of total assets including foreign assets and total liabilities including foreign liabilities.
Further, an explanation has been inserted after clause (b) of sub-section (1) that assets of the spouse shall only be included in the wealth statement of the person if the spouse is dependent on the person.
Read full text of Explanation of Finance Act, 2024 Amendments made in the Income Tax Ordinance, 2001 for more updates on taxes from FBR click here.
